Currency Exchange

You are on a trip to Germany. You swap your dollars for Euros. Why exchange currency while you are there?

• To buy or sell goods in Germany; they won't take dollars.

• Because dollars are worth the same as other currency

• Because Euros are a great souvenir.

According to the table, what is the Euro equivalent of 1 USD?

• 1.32 Euros

• 0.53 Euros

• .76 Euros

• 1.59 Euros

What is an exchange rate?

• The rate at which goods are exchanged between two countries

• The price of one nation's currency in terms of another's

• How many US dollars you can exchange for RMB at Travelex

• The price of goods in terms of a foreign currency

What does international trade require?

• The president of every country to inspect the goods & services

• permits to specialize in goods and services

• an agreement to voluntary trade around the world

• a fair way to swap currency known as exchange rate

19 out of 28 countries use the Euro. Why?

• Because they are members of the European Union and it makes it easier to trade with one another.

• Because the World Health Organization said they have to due to coronavirus

• Because they said the Euro looked better than their original form of money/currency

• Because they like to trade with America and we only accept Euros

________________ occurs when different countries choose to engage in the exchange of goods with one another.

• Crimes

• Voluntary Trade

• Specialization

• Tariffs

____________________ is something that is assigned value and can be used to purchase goods and services in a market.

• Tariff

• Currency

• Quota

• Embargo

Because countries have different forms of currency, international trade requires a system for exchanging currencies between nations. This process it called ___________________.

• Trade Embargos

• Trade Barriers

• Currency Exchange

• Voluntary Trade

Turkey's currency is called ________________.

• afghani

• peso

• rial

• lira

An exchange rate is used to

• promote the argument supporting free trade

• promote the use of subsidies on foreign goods

• determine the price of one country's currency in terms of another country's currency

• none of these